Generating Retirement Ownership through Long-Term Holding

IntroducedMarch 11, 2025

Introduced1 year ago

Intro

House

Senate

Pres

Referred to the House Committee on Ways and Means.

Taxation

Why This Matters

This bill amends the tax code to let individuals defer recognition of capital gain dividends reinvested in additional shares of regulated investment companies. The deferred gain is recognized when the reinvested shares are sold or when the investor dies.

Who this affects

Individual investors · Estates · Trusts · Dependents

What changes is this bill making?

1Allows individuals to defer tax on capital gain dividends from regulated investment companies when those dividends are automatically reinvested under a dividend reinvestment plan.
2Requires investors to recognize the deferred gain when they sell or redeem the reinvested shares.
3Requires any remaining deferred gain to be recognized at the investor’s death.
4Treats shares acquired through reinvestment as held for more than one year for long-term holding status.
5Excludes individuals claimed as dependents by another taxpayer and excludes estates and trusts from the deferral.
6Directs the Treasury Secretary to issue regulations to implement these rules.
7Applies to taxable years ending after the bill becomes law.

Read full document

Generating Retirement Ownership through Long-Term Holding

IntroducedMarch 11, 2025

Introduced1 year ago

Intro

House

Senate

Pres

Referred to the House Committee on Ways and Means.

Taxation

Why This Matters

Who this affects

Individual investors · Estates · Trusts · Dependents

What changes is this bill making?

1Allows individuals to defer tax on capital gain dividends from regulated investment companies when those dividends are automatically reinvested under a dividend reinvestment plan.
2Requires investors to recognize the deferred gain when they sell or redeem the reinvested shares.
3Requires any remaining deferred gain to be recognized at the investor’s death.
4Treats shares acquired through reinvestment as held for more than one year for long-term holding status.
5Excludes individuals claimed as dependents by another taxpayer and excludes estates and trusts from the deferral.
6Directs the Treasury Secretary to issue regulations to implement these rules.
7Applies to taxable years ending after the bill becomes law.

Read full document